9911796707
TMI Blog2018 (1) TMI 1447X X X X Extracts X X X X X X X X Extracts X X X X ..... e accepted. Thus, addition on account of milling gain is against law. 2. The facts in brief are that the assessee is running a flour mill. The return for the year under consideration was filed at Nil income after set off of earlier year loss. The case was selected for scrutiny and assessment completed under section 143(3) of the Act by making the following disallowance/addition:- i) Milling gain Rs.1,82,245/- ii) Disallowance out of machinery expenses Rs.25,000/- 3. From the order of the Assessing Officer, it is noticed that the assessee is carrying on the business of flour mill and trading in food grains. The books of account were produced and have been examined by the Assessing Officer. During the year under consideration, assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntals of milling gains works out to Rs. 1,82,245/- which is treated as sale outside the books. Accordingly, an addition of Rs. 1,82,245/- was made to the total income of the assessee. 4. The matter thereafter travelled before the ld. CIT(A) and though the assessee has filed condonation of delay petition as appearing in the ld. CIT(A)'s order, the ld. CIT(A) was not convinced with the reasons in the condonation petition and accordingly he dismissed the appeal of the assessee on the ground of limitation. 5. Being further aggrieved, the assessee is in appeal before us. The ld. A.R. of the assessee at the time of hearing filed a written submission and prayed that his case be decided on the basis of the written submission filed. 6. The ld. D. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... material on record and, therefore, we are of the considered view that the addition made by the Assessing Officer and confirmed by the ld. CIT(A) is without any basis and liable to be deleted. We, therefore, delete the addition of Rs. 1,82,245/- made on account of milling gain. 9. Regarding machinery repairing expenses, an amount of Rs. 5,58,302/- has been debited under the head "machinery repairing expenses". The Assessing Officer, on examination of bills and vouchers relating to expenses, noticed that some of the expenses were not supported with verifiable vouchers and were in cash. Considering the facts and circumstances of the case, he disallowed Rs. 25,000/- on this account and added to the income of the assessee. 10. The ld. CIT(A), ..... X X X X Extracts X X X X X X X X Extracts X X X X
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